Private home resale prices up slightly in October

While prices have gone up, the number of resale transactions dipped by 2.2 per cent on-month in October with an estimated 451 units resold, according to flash estimates from SRX Property.

SINGAPORE: Resale prices of non-landed private homes climbed marginally in October by 0.4 per cent month-on-month, according to flash estimates from Singapore Real Estate Exchange (SRX) Property on Tuesday (Nov 11).

When compared with October 2013, resale prices of non-landed private homes have dropped 4.5 per cent. Compared with the recent peak in January 2014, prices have declined 5.2 per cent, SRX said.

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Resale prices of private homes in the Rest of Central Region and Outside of Central Region drove the climb, with both increasing 0.6 per cent. In contrast, prices in the Core Central Region dipped 0.3 per cent.

However, the number of resale transactions slipped by 2.2 per cent from September, with an estimated 451 units resold in October compared to the 461 transacted units from the previous month.

TOX REMAINS IN NEGATIVE RANGE

The overall median Transaction Over X-value (TOX), which measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value, dipped to -S$4,000 in October from -S$2,000 in September.

For districts with more than 10 resale transactions, districts 9, 10 and 25 saw a positive median TOX, with district 10 posting the highest median TOX of S$30,000, followed by district 9 with S$22,000 and district 25 with S$15,000.

Conversely, district 14 had the lowest median TOX, posting -S$41,000, followed by district 12 with -S$40,000 and district 11 with -S$31,000.

PRICE INCREASE DOES NOT INDICATE MARKET'S RECOVERY: OBSERVERS

Property watchers have said the marginal increase in prices of non-landed private resale homes does not indicate a recovery in the market.

"If you subject the prices to certain adjustment factors, you build into those numbers a certain statistical margin of error. And this band could mean that the 0.4 per cent increase could also be interpreted as 'it may have well fallen too' within that band of confidence," said Alan Cheong, Savills Singapore's senior director of Research and Consultancy.

Added Nicholas Mak, executive director at SLP International Property Consultants' Research and Consultancy Department: "There is no change in the market fundamentals that resulted in the current market weaknesses. The cooling measures and TDSR (Total Debt Servicing Ratio) framework are still in place and the Government had mentioned that it would not remove these curbs any time soon".

However, Mr Cheong said the numbers also signal a resiliency in prices. "If there are no external events or accidents, prices are likely to remain at these levels - pretty resilient."

He added: "Stock prices can go up 10 per cent, pull back 10 per cent, go down 15 per cent and recover. It does not happen in hard-asset markets like real estate. So real estate prices tend to be very stable. No matter how hard you try to jump at it, it will probably remain at those levels, it would not be compressed down too much."

SLP International Property Consultants also noted that the market seems to be stabilising based on SRX's data. It pointed out that the SRX resale price index has been wavering around 168.8 and 169.8 since July 2014.

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Private home resale prices up slightly in October

While prices have gone up, the number of resale transactions dipped by 2.2 per cent on-month in October with an estimated 451 units resold, according to flash estimates from SRX Property.

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